wiscoaster
Member
Just keep in mind inflation is determined by three non-related components: 1) supply and demand, 2) government fiscal policy, 3) central bank monetary policy. Only #1 is market-dependent. Future inflation due to #2 has already been baked in by recent fiscal policy and any policy change due to next week's election will have no near term effect. Inflation due to #3 is independent of #2 and is maintained at a minimum average target rate determined by the central bank. Therefore the results of the election on inflation in the near term will only affect supply and demand insofar as producers and consumers react to those results..Next week will go a long way to determniing how long prices stay inflated.
If you skipped the long and boring story, the conclusion is: don't hold your breath waiting for prices to return to what they were a year ago. It ain't gonna happen.
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